OpenAI is reportedly shutting down its Sora video generation tool, less than two years after it first gained widespread attention. Sora was introduced in 2024 as a way to create realistic video clips from simple text prompts. Early demos generated a lot of buzz, especially about how quickly the quality improved.
But that momentum didn’t translate into long-term traction. OpenAI has now announced plans to move away from video generation and focus on areas such as robotics and so-called “agent” AI.
However, the situation surrounding Sora does not mean an immediate closure. Although OpenAI has indicated that it is discontinuing the app and ending development, the tool did not disappear overnight. For example, the web version is still accessible for now, but the end date is not yet clearly defined. This suggests that Sora is in a transition phase. It’s no longer a priority, but it’s also not completely offline.
This change is not just about the products themselves. OpenAI is also pulling back from a major content partnership with The Walt Disney Company that was announced just a few months ago. The deal is reportedly worth around $1 billion and will allow Sora users to generate videos featuring famous Disney characters.
Disney was reportedly somewhat taken by surprise by the decision, as the agreement was not far enough along for payments to be made. The company then said it would continue to explore AI partnerships elsewhere while closely monitoring how its intellectual property is used.
Sora’s commercial performance may have played a role here. Despite the initial excitement, the platform reportedly generated around $1.4 million in worldwide in-app revenue, a relatively small number compared to ChatGPT’s $1.9 billion in the same period. There were also ongoing concerns about moderation, including abuse involving deepfakes, copyrighted content, and non-consensual images.
At the same time, competition in this field is increasing, with new tools emerging from other companies. The combination of legal risks and rising infrastructure costs may have made it more difficult to justify Sora’s continuation.
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